Monday, November 3, 2014

Zappos Turns Online Videos into Click Throughs

Zappos is an online store that sells apparel and footwear. The company’s portfolio includes product categories such as shoes, clothing items, beauty products, bags and handbags, accessories, housewares, and gift cards. Zappos.com, Inc. was formerly known as Shoesite.com and changed its name to Zappos.com, Inc. in June 1999. The name comes from “Zapatos”, which means shoes in Spanish. Founded in 1999 and based in Las Vegas, Nevada, Zappos.com, Inc. operates as a subsidiary of Amazon.com Inc.

As one of the largest online retailers, Zappos is under constant pressure to keep traffic coming to their website, and clicking through different pages until they find the products they ultimately want to purchase in a quick, yet efficient manner.

 In 2011when Zappos began mass-scaling online videos and focusing on efficient key word usage, the online shoe retailer achieved superior exposure among its target audience. With a test of more than 21,000 shoe-related keywords, SundaySky (Creator of Smartvideo) found that more than 8% of these combinations brought searchers to Zappos product videos that highlighted the merchant’s offerings. According to one source, Zappos experienced an increase of more than 77,000 site visits per month after adopting video SEO, versus a previous average click-through rate for text pages. It was also reported that the value of visits based on the tested keywords and search engine marketing (SEM) traffic totaled more than $500,000 in revenue. According to DigitalSherpa, website visitors are 64% more likely to buy a product on an online retail after watching a video.

Not only is Zappos a powerhouse in using YouTube videos to drive SEO initiatives, but also the company has successfully leveraged social media (specifically Facebook) to get 85,000 visits to its website from Facebook in 2013. According to Bryan Eisenberg, a marketing ROI expert, the average conversion rate for retail is 2% to 3%, whereas Kenshoo reported that for one particular post, Zappos got a 3.5% click-through rate and a 3.4% conversion rate for a revenue per click of $4.90, which represented a 34X ROI.

The company prides itself as a top online retailer with a CEO who is active on social media himself. Their entire business lies in the hands of e-commerce and website visitors.  One of the most fascinating things about the company is that they simply continue to get better at using web analytics to grow their company. Top marketing executives at Zappos are constantly looking for new ways to adapt their strategies to gain customers and make the shopping experience better for their existing customers.

As stated in a feature article written by Forbes Magazine, “Tony Hsieh and his team built a billion dollar a year business by selling shoes online. They did it largely without spending any money on traditional media. Instead, Zappos invested back into its customers by doing the little extras. The extras included free shipping both ways, overnight shipping upgrades, a 365-day return policy and top-notch customer service.”


This exceptional customer service combined with innovative marketing have made Zappos the powerhouse company that it is today. Having a solid understanding of SEO and web analytics has only helped rocket the company past their competitors and has given customers even more reasons to visit their site and view their products.

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